A complete pack to support the board meeting at which your AI Use Policy is adopted. Includes a model agenda, prepared talking points, decision questions the board should answer on the record, the adoption resolution, and the annual reporting template. Last reviewed: May 25, 2026.

How to Use This Pack

Send the Board Brief and this pack to board members one week before the meeting. The Staff Handbook can be attached as a reference, but the board’s vote is on the Brief; the Handbook is owned by the Executive Director. Plan 30 to 45 minutes of board time. The Executive Director (or AI Use Officer) leads; the chair calls the vote.

Model Meeting Agenda

1. Purpose and context (5 min). Why we’re adopting a written AI policy now.
2. Walk-through of the Board Brief (10 min). Three-tier framework, prohibited uses, responsibilities.
3. Decision questions (10 min). Board answers on the record (see below).
4. Federal-award overlay, if applicable (5 min). Cost allowability, allocation, classification.
5. Risk and incident reporting (5 min). When will the board hear about AI use.
6. Vote on adoption (2 min). Approve the Brief by resolution.
7. Next 90 days (3 min). What staff will do between this meeting and the next one.

Prepared Talking Points

Why now

AI tools are already in use across our sector, formally or informally. Without a written policy, every staff member makes their own decisions about what to paste into which tool. With a written policy, the organization operates inside guardrails that protect participants, funders, and staff. The cost of getting this on paper is one meeting. The cost of not having it in place when something goes wrong is much higher.

What we are adopting

A one-page AI Use Policy with a three-tier framework: Permitted uses (no advance approval), Restricted uses (approval required from the AI Use Officer using a Tool Approval Worksheet), and Prohibited uses (not permitted under any circumstances). The Executive Director will issue an operational Staff Handbook consistent with the policy and is accountable for implementation.

What we are not adopting

This is not an AI strategy, a tool selection, a budget request, or a public statement. It is a governance document. Specific tools and uses come back to the board only as part of the annual report, or sooner if a material incident occurs.

What’s already happening that this addresses

[Executive Director: insert two or three honest sentences about current AI use, whatever it is. “Our development team has used ChatGPT for first-draft donor emails. Our case managers have asked whether AI can help with notes. We do not have a written rule today.” Honesty here is the foundation of credibility on the policy.]

The prohibited uses

The hardest part of the policy is the prohibited-use list. Four prohibitions matter most: AI may not determine eligibility for any service or benefit; AI may not make participant-affecting decisions without documented human review; sensitive or regulated participant data may not be entered into tools without enterprise-grade data-handling commitments; and we will not represent AI-generated content as exclusively human-authored where the distinction is material. These are bright lines.

If we operate under federal awards

AI tool costs charged to federal awards must comply with the Uniform Guidance at 2 CFR Part 200 — specifically the allowability, allocability, and consistency rules. The Staff Handbook’s federal-award appendix and the Federal Grants & AI Compliance Quick Reference operationalize this. The board’s annual review will include any AI costs charged to federal awards in the prior year.

Annual review and incident reporting

The board reviews this policy at least annually. The Executive Director reports any material AI incident to the board chair within five business days, and to the full board at the next meeting or sooner if circumstances warrant. “Material” includes any incident affecting participant trust, regulatory exposure, or funder reporting.

Decision Questions for the Board

The board should answer these on the record before voting. Capture each answer in the minutes.

1. Does the board adopt the AI Use Policy — Board Brief as presented? If not, what changes are required?
2. Does the board confirm the Executive Director as the AI Use Officer? If not, who is named?
3. Does the board accept the prohibited-use list as drafted? Any additions specific to our programs?
4. For federally funded programs: does the board direct the Executive Director to ensure compliance with applicable federal cost principles before any AI tool cost is charged to a federal award?
5. What is the threshold for board notification of an AI incident? (Default: material incident reported to the chair within five business days and to the full board at the next meeting.)
6. What date is the first annual review of this policy? (Default: 12 months from adoption.)

Model Adoption Resolution

RESOLVED, that the Board of Directors of [Organization Name] hereby adopts the AI Use Policy — Board Brief, attached hereto and dated [Date], effective [Effective Date]; designates the Executive Director (or such other officer the Executive Director may designate from time to time in writing) as the AI Use Officer responsible for implementation; authorizes the Executive Director to issue and maintain the companion Staff Handbook consistent with this policy; and directs the Executive Director to report to the Board annually on AI use, on the Approved-Tool List, on any AI tool costs charged to federal awards in the prior year, and on any material incident.

Annual Report Template

The Executive Director presents this report to the board at least annually. Keep it to two pages; attach the Approved-Tool List as an exhibit.

• Year in review. What AI uses were operating in the prior year, by tier (Permitted, Restricted). One paragraph.
• Approved-Tool List. Current list as an attachment.
• Approvals issued and denied. Number of Tool Approval Worksheets processed, number approved, number denied, and a sentence on why anything was denied.
• Disclosure practice. Where the organization is using Footer-tier or Explicit-tier disclosure, and any changes since last report.
• Incidents. Number of incidents reported, what they were, what corrective action was taken. If zero, state that.
• Federal-award AI costs. If any, by award, with classification (direct or indirect) and allocation methodology. Confirm consistency with 2 CFR 200.
• Training. Percentage of staff who completed the annual AI Use Policy training.
• Recommended changes. Any updates the Executive Director recommends to the Board Brief or Handbook for adoption this year. If none, state that.

Communication After Adoption

Within 30 days of adoption, the Executive Director:

• Distributes the Staff Handbook to all staff with an acknowledgment-of-receipt page to sign.
• Adds the policy and handbook to the staff onboarding materials.
• Posts a short public-facing AI use statement on the organization’s website footer or About page.
• Informs key funders, partners, and pass-through agencies as appropriate (typically required only where a specific award’s terms call for it).
• Sets the date for the first quarterly check-in on policy implementation.

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Use this pack with the Board Brief and the operational Staff Handbook. Templates only — not legal advice. Review with counsel where your organization has specific legal obligations.